Prime Minister Narendra Modi’s appeal urging Indians to avoid overseas travel for a year to help conserve foreign exchange reserves is unlikely to have a material adverse impact on Ixigo, according to Group CEO Aloke Bajpai, who said he expects some of the moderation in outbound tourism to be substituted by demand for domestic travel.
Speaking to NDTV Profit on Wednesday, Bajpai said Indians spend an estimated $15-17 billion annually on international travel and that the government’s appeal should be viewed in the broader context of efforts to preserve foreign exchange amid elevated crude oil prices and a weakening rupee.
Bajpai remarked that it is too early to see any impact in Ixigo’s booking and search trends, especially since the announcement was made only a day earlier.
However, he expects some travelers who may have planned discretionary overseas holidays to instead choose destinations within India.
“We expect that there’ll be some domestic substitution that will happen, in people not travelling abroad but choosing to travel to Indian destinations instead,” Bajpai said.
He noted that domestic travel remains the backbone of Ixigo’s business, supported by its strong presence in rail and bus ticketing. The company has also recently expanded into hotel bookings, a segment that could benefit from higher domestic tourism.
According to Bajpai, international flights accounted for around 20% of Ixigo’s flight gross transaction value (GTV) in the December quarter, translating into roughly Rs 400 crore per quarter. He said this remains a relatively small component of the company’s broader business, which is currently operating at an annual run rate of Rs 17,000 to 18,000 crore.
While international travel demand has been affected by geopolitical uncertainty, particularly in the Middle East since March, Bajpai said essential travel such as visiting relatives and attending important events abroad is likely to continue.
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He also acknowledged recent flight cancellations, including disruptions on certain long-haul routes operated by Air India, but said India remains fundamentally a supply-constrained market across aviation, rail and hotel infrastructure.
“Even on the flight side, we don’t have enough planes, and on the hotel side we could absorb more four- and five-star inventory,” he said.
Bajpai added that temporary disruptions are unlikely to alter long-term demand trends. Drawing parallels with the post-COVID-19 rebound, he said travel demand tends to recover strongly once uncertainties ease.
Overall, Bajpai said the government’s call may reduce some discretionary outbound travel, but the resulting shift toward domestic tourism could prove beneficial for Ixigo’s core businesses, limiting any significant negative impact on the company.
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